Australian Shares Slide for Fourth Day as Miners Drag Index Toward Worst Week in Six Months
Australian shares fell for a fourth straight session, led by heavyweight miners, with the benchmark on track for its worst weekly loss since early March.
Australian equities extended losses into a fourth consecutive session on Friday, with broad-based selling led by heavyweight miners as investors weighed inflationary pressures and the prospect of further interest-rate increases tied to an energy shock stemming from Middle East tensions.
The S&P/ASX 200 index was down 1.1% at 8,727 by 0010 GMT, after settling 1% lower on Thursday in its weakest session since early June. For the week, the benchmark is headed for a decline of about 3.2% — its sharpest since early March — as markets grapple with heightened geopolitical risk and its consequences for energy supply, with crude prices holding above the $100 mark.
Government borrowing costs across major economies remain at or near multi-decade highs amid persistent inflation worries and elevated interest rates. A run of hawkish remarks from central bankers has reinforced expectations that Australia may raise rates soon to contain sticky inflation driven partly by rising fuel costs. Yields on the three-year bond climbed to 5.038% on Friday, a level last recorded in May 2011.
On the Sydney bourse, the mining sub-index dropped 3.9% to a one-month low. BHP fell 4.4% and Rio Tinto lost 3.1%. The sector came under pressure as copper prices retreated from record highs after it emerged that the White House has not yet decided on refined copper tariffs while officials assess concerns that higher prices could push up manufacturing costs.
Technology stocks mirrored weakness on Wall Street, sliding 1.7% to their lowest since late July. Sector heavyweights WiseTech Global and Xero shed 2.7% and 1.2%, respectively.
Energy stocks were the lone bright spot, gaining 0.6% and heading for their best week since mid-August. Woodside Energy and Santos each added 1.1%.
Across the Tasman, New Zealand's S&P/NZX 50 index edged down 0.2% to 13,687.80 and was on course for a weekly decline of 2.4%, its weakest since early March. Investors there will watch for the country's quarterly growth figures due next week.